CONTENTS - Capgemini

The facility agreement includes covenants restricting the Company’s
ability to carry out certain operations. These covenants also apply to
Group subsidiaries. They include restrictions primarily relating to:
pledging certain assets as collateral,
asset sales, mergers or similar transactions.
Cap Gemini S.A. also committed to standard obligations, including
obtaining and retaining the necessary authorizations, maintaining
insurance cover and maintaining pari passu treatment.
III. MAIN CHARACTERISTICS OF FINANCIAL DEBT
A) Interest rates and currencies
Average interest rate on Group financial debt
In 2006, the average interest rate on the Group’s financial debt was 5.3%.
Lastly, the agreement contains the usual provisions relating to early
repayment, including for failure to pay sums due, misrepresentation
or failure to comply with other obligations included in the agreement
(subject to any applicable “grace” periods), cross-defaults (in excess
of a minimum threshold), insolvency and bankruptcy proceedings,
change of control, or changes which would have a significant negative
impact on the financial position of the Group.
At the date of this report, no drawdowns had been made on this
credit facility.
Fixed rates/variable rates
At December 31, 2006, 41% of Group financial debt is at variable rates, of which 35% is capped, and 59% is at fixed rates.
Analysis of the sensitivity of net finance costs in 2006 to a rise in interest rates
The impact on gross finance costs of a theoretical 1% annual average rise in interest rates based on an annual average financial debt position,
is an estimated €1 million (€6 million at December 31, 2005).
The impact on income from cash and cash equivalents of a theoretical 1% annual average rise in interest rates based on an annual average
cash and cash equivalents position, is an estimated €20 million (€14 million at December 31, 2005).
Accordingly, a 1% increase in interest rates would have an estimated €19 million positive impact on net finance costs.
Effective interest rates (EIR) and maturities of financial debt
At December 31 2004 2005 2006
EIR
Amount
(€ millions)
EIR
Amount
(€ millions)
EIR
Amount
(€ millions)
Within
1 year
1 to
2 years
2 to
5 years
Short-term investments 2.20% 1,001 2.50% 1,805 3.70% 2,460 2,460 - - -
Cash 1.90% 251 1.90% 416 2.40% 442 442 - - -
Bank overdrafts 2.60% (20) 2.80% (85) 3.50% (43) (43) - - -
Beyond
5 years
CASH AND CASH
EQUIVALENTS
1,232
2,136 2,859 2,859 - - -
“OCEANE 2003” bonds 5.10% 408 5.10% 418 5.10% 427 - - 427 -
“OCEANE 2005” bonds
Drawdowns on bank
- - 4.80% 396 4.80% 411 - - - 411
and similar facilities
Obligations under
2.80% 46 6.10% 8 6.80% 6 6 - - -
finance leases 4.90% 228 4.60% 174 6.00% 156 49 31 50 26
Other financial debt 4.60% 266 5.40% 220 5.40% 224 9 94 37 84
Commercial paper - - 2.65% 15 - - - - - -
TOTAL FINANCIAL DEBT 948 1,231 1,224 64 125 514 521
ANNUAL REPORT 2006 Capgemini
95